Vår Energi ASA (OSE: VAR, “the Company”) and partners have sanctioned the first tie-in development to extend plateau production from the Johan Castberg field in the Barents Sea towards 2030.

The Johan Castberg licence, operated by Equinor, has made a final investment decision for the Johan Castberg Isflak Development. The partnership is also planning six new Increased Oil Recovery (IOR) wells and a development of the Drivis Tubåen discovery. The projects add total reserves of 27 million barrels of oil equivalent (mmboe) net Vår Energi, and demonstrate strong breakeven price and return on investment.

The Isflak development is expected to start production in the fourth quarter 2028 and consist of two wells and a subsea template, which will be connected to the existing subsea infrastructure in the Johan Castberg field.

Vår Energi COO Torger Rød said:

"The projects underline the Barents Sea’s potential and marks an important step in Vår Energi’s plan to sustain production of 350 to 400 thousand barrels of oil equivalent per day (kboepd) towards 2030 and beyond. The development leverages existing infrastructure to secure Johan Castberg plateau production for years to come, strengthening our position in the region and reaffirming our long-term commitment to value creation".

The Johan Castberg field started up in March 2025 and reached plateau production in June. With a 30% equity share Vår Energi now produces 66 kboepd net from the field, which corresponds to around 15% of the Company’s current production. The operating costs of Johan Castberg is below USD 3 per boe.

With multiple discoveries and prospects that can be developed to maximise production over time, the area offers large potential. The plan is to drill one to two exploration targets each year, with four identified prospects already lined up for 2026 and 2027.

The Johan Castberg area holds a substantial resource potential, and the licence is targeting to unlock more than one billion barrels over the asset’s lifetime, with opportunities to sustain plateau production towards 2030.

Partners in the Johan Castberg licence (PL532): Equinor (operator and 46.3%), Vår Energi (30%) and Petoro (23.7%).

About Vår Energi

Vår Energi is a leading independent upstream oil and gas company on the Norwegian Continental Shelf (NCS).